Oil Prices Climb as Hopes Rise for End to U.S. Government Shutdown

Oil prices edged higher in Asian trading on Monday as optimism grew that the U.S. government shutdown—the longest in history—could soon end, potentially revitalizing fuel demand in the world’s largest oil consumer. The rebound also came after last week’s nearly 2% decline, when fears of oversupply and weakening global demand weighed heavily on crude prices.

Brent crude futures for January delivery rose 0.7% to $64.06 a barrel, while West Texas Intermediate (WTI) gained 0.7% to $60.03 by 20:32 ET (01:32 GMT). Analysts attributed the uptick partly to bargain buying after last week’s losses, alongside a boost from positive inflation data in China, the world’s top oil importer.

Market sentiment strengthened as reports indicated that several Democrats agreed to back a Republican spending bill funding the government through January 30, 2026. Voting in the Senate was still underway late Sunday, but investors viewed the bipartisan progress as a major step toward ending the shutdown. The closure had severely impacted air travel in key U.S. cities and raised concerns about reduced fuel consumption. A resolution could revive travel activity during the winter holiday season, supporting oil demand.

Traders are also eyeing the upcoming monthly reports from the Organization of Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA), due Wednesday and Thursday, respectively. These reports are expected to shape market expectations, as the two organizations maintain differing views on supply and demand trends.

OPEC has already increased production by nearly 3 million barrels per day in 2025, sparking worries about a potential supply glut amid slower global growth. Despite recent price volatility, traders remain hopeful that easing political tensions and renewed economic activity could help stabilize oil markets.